THE CITY'S longstanding housing affordability could be under threat as a new report reveals property demand is "out of balance" with land supply.
In recent weeks there has been an emphasis on the need for medium to higher density housing due to Wagga being a landlocked city.
Fitzpatricks Real Estate agency released its annual property report on Friday.
It covers the current population and residential and commercial market trends for the 2019 financial year.
The report highlighted that the supply of land "slightly" increased over the previous period by providing 35 additional lots, which equates to 280 sales.
However, it noted that Wagga City Council must address land supply otherwise the city will witness "serious upward pressure on price and its housing affordability".
City strategy manager Tristan Kell said it was important that future land releases are supported by infrastructure.
Mr Kell said some infrastructure in Gobbagombalin is being constructed, despite homes already being built there.
He said supply of land is fundamental to Wagga's growth.
"At the moment, most of our homes being built are four-bedroom, which doesn't reflect the housing needs of Wagga," he said.
"There's a need for different types of housing and medium density or smaller dwellings is something we have to improve on.
"We don't just want to improve project homes, but also supporting urban renewal and urban infill within existing infrastructure."
Mr Kell said medium and higher density housing can provide people with a unique lifestyle as well as supporting growth in industries that are struggling.
"[It can] reinvigorate businesses, encourage public transport and lead to a better use of council assets, like the parks which then lifts vibrancy and safeness," he said.
In other property news
Wagga's median house price increased by 4.39 per cent, from $354,500 to $370,000, according to the report.
Mr Kell said this figure represents stable growth and is positive news for investors and owner occupiers as well as people wanting to get into the housing market.
However, he said if pricing growth increased by 10 to 20 per cent, this could be concerning for those wanting to enter the market.
"Esepcially for first home buyers, if the price jumps too much then housing affordability and mortgage stress would become problems," Mr Kell said.
"These are problems throughout Australia, it's not as big of an issue for people in Wagga than it is in major cities.
"We can't drop the ball ... a range of different housing will support a steady supply."